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To: Hojczyk

Actually, the federal government takes in enough revenue in payroll taxes (FICA) to pay about 98% of current Social Security and Medicare expenditures. So what Obama is saying is that those payroll taxes, which are supposed to be segregated from the general treasury funds and dedicated to Social Security and Medicare, are actually just being dumped into the general fund and being spent for such things as foreign aid, NEA, welfare, and all of the other liberal programs.


25 posted on 07/14/2011 1:16:37 PM PDT by CA Conservative
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To: CA Conservative
Actually, the federal government takes in enough revenue in payroll taxes (FICA) to pay about 98% of current Social Security and Medicare expenditures.

Not so for Medicare. The General Fund pays for 51% of all Medicare costs. Medicare Part A is funded thru the HI trust fund, which started cashing in its IOUs in 2008. By law, the General Fund pays for 75% of the Medicare Parts B and D costs. The premiums only account for 25% of the costs. In 2011 the projected expenditures for SMI (Medicare Parts B and D) will amount to $295 billion, 75% of which are paid by the General Fund. SMI costs are larger than Medicare Part A costs. The HI trust fund will run out in 2024 because of the Obamacare "fix." Prior to that the date was 2017.

36 posted on 07/14/2011 2:02:25 PM PDT by kabar
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